IRS Announces Pre-Tax Contribution Limits for 2018

OverviewOn October 19, the Internal Revenue Service announced annual inflation adjustments for 2018. IRS Rev. Proc. 2017-58 provides that for taxable years beginning in 2018, the following maximums apply for Health Flexible Spending Arrangements, Adoption Assistance Programs, and Commuter Benefits.

Health FSA Limit: The annual Health FSA limit will increase from $2,600 in 2017 to $2,650 in 2018.

Adoption Assistance Limit: The annual Adoption Assistance limit will increase from $13,570 in 2017 to $13,840 in 2018.

Commuter Benefits Limits: The monthly transit and parking limits will both increase from $255 in 2017 to $260 in 2018.